With profound weakness in [[BSC]], [[WM]], [[ABK]], [[SOV]] and [[CORS]], I suspect many investors are biting the bullet and taking losses on financials.
Although the short financial trade is crowded, it may still work, for much of 2008. The share prices are down, but do not reflect a bad 2008, yet.
Most people are still gingerly optimistic about a 2008 comeback, particularly in the brokers.
How about a big bankruptcy?
Well, we haven’t had one yet. I suspect there will be some sort of capitulation day in 2008, on the back of a “gigunta” bankruptcy, which will allow the sector to bottom.
Until then, I want to be short [[C]], [[BAC]], [[JPM]], [[AIG]], [[WFC]], [[GS]], [[AXP]], [[MS]] and [[FNM]], via [[SKF]].
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Yes, next time I’ll review the Fly Buys category before asking. SKF it is.
Hey whatever happened to Mr. Bilderberg?
I’m surprised that UBS isn’t down like the rest. They are getting a $5 B inflow from Saudi Arabia, but it looks like sub-prime writedown will be $40B.
Odd, no?
Every financial firm that has needed a direct cash infusion to shore up its capital base has gotten one. C, MS, BSC, FRE, ETFC, CIT, MBI, UBS, FMD, and soon MER. In addition, the FED, the Federal Home Loan Banks, and ECB are all telling the financial firms to come get however much money they want. How can you have a bankruptcy when they’re all being bailed out and the central banks are being so accomodative?
It will be interesting to see if HOV gets bailed out by the Arabs/Chinese.
Circuit City is the next big bankruptcy. If you can’t sell flat screen televisions this time of year, you deserve to go under.
Fly,
What’s with these parenthetical stock symbols and quotes. When users click on the symbol, they’re directed away from your site.
You should check out that adaptive blue stuff.
Look, I can’t consult like this for free, forever…
-DT
DT:
Soon enough, we will be hosting the stock quotes.
Another future Fly win!
I like the way it is now, better than adaptive blue.
Remember a few months ago when i said i had another stock dream? It was that etfc went under.
You’re a music city liar.
A little after the fact, eh?
Fly,
Is there another ETF similiar to XLF that only consists of the investment banks like GS,BSS,LEH,MS. Just curious since the XLF also piles in real estate companies and lenders.
Hey pudfucker-
It will be the bond insurers that cause one of these banks to go under.
Trillions in default swaps.
mdawsz,
This is why your blog went under.
-mdinosaursz
Krispy Kreme buyout of NTRI. Makes sense, right?
what do you think of shorting MBI down here.
wood,
what Pud said still holds true, btw there is actually 500 – 700 trillion of derivitives out there, and even worse according to the bis the counterparties are unknown because of backup in record keeping if you can believe that. if i know that and you know that, i think the powers to be also know that. i think and hope that we learned from the mistakes of the 30’s. in addition to what Pud said, unlike the 30’s, there is worldwide coordination. i suspect that the coordination is not limited to central banks.
Folks, CE is looking real good right here for a trade.
Off to take a nap.
Not lying but i can understand why youd think so.
With one hour left, it looks like a nice short covering rally to end the week.
I’m outta here. Off to drink heavily spiked egg nogg.
not a peep out of the bears today
must be time to slap on a few shorts & dump some longs
Bruce — had meetings from 12:30 to right now… put my shorts on before I left, and they are substantially the same….
Freaking deal bidness is going nuts right now… question is — “is it the rats streaming from the sinking ship…?”